Wednesday, November 15, :00 PM City Council Chambers, 125 E. Avenue B, Hutchinson, Kansas

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1 H ousing Commission Meeting Agenda Wednesday, November 15, :00 PM City Council Chambers, 125 E. Avenue B, Hutchinson, Kansas 1. CALL MEETING TO ORDER A. Davenport (1/1) S. Cooley (6/9) N. DeBerry (4/4) A. Finlay (C) (8/9) L. Gleason (6/9) A. Patterson (VC) (8/9) R. Patton (2/4) L. Soltow (6/8) K. Lanham (0/0) Ex-Officio Members: D. Rich (8/9) J. Thomson (7/9) 2. APPROVAL OF MINUTES October 25, ANNOUNCEMENTS a. Welcome Kelly Anne Lanham b. Housing Commission Roster 4. WRITTEN REPORTS a. Brush Up Hutch Year-to-Date Report (attached) b. Down Payment Match Incentive Year-to-Date Report (attached) c. Zero-Interest Home Repair Loan Year-to-Date Report (attached) d. Year-to-Date Housing and Rental Registration Report (attached) 5. ORAL REPORTS a. Healthy Neighborhoods Initiative (McCarron, Gleason, Finlay) i) Introducing Adam Stewart, Neighborhood Coordinator, HutchRec b. Hutchinson Land Bank Update (Allison) 6. OLD BUSINESS a. Recommended List of Strategies (Allison) See attached. 7. NEW BUSINESS a. New Construction Discussion (Finlay) See attached. 8. OTHER a. Letter from Landlord b. The next Housing Commission meeting is scheduled for Wednesday, December 20, 2017; 4:00 PM. 9. ADJOURN Follow the Hutchinson Planning Department on Facebook & Twitter

2 ITEM 2 HOUSING COMMISSION MINUTES MEETING OF: WEDNESDAY, OCTOBER 25, 2017 MEETING LOCATION: CITY COUNCIL CHAMBERS 125 EAST AVENUE B 1. ROLL CALL The Housing Commission meeting was called to order at 4:03 p.m. with the following members present: Ryan Patton, Nathan DeBerry, Angie Davenport, Lisa Gleason, Dan Rich, Jeff Thomson and Anthony Finlay. Aubrey Patterson, Scott Cooley, and Lucas Soltow were absent. Diane Crabtree, Interfaith Housing Services; Mark Eaton, Land Bank Member, and Steve Dechant, City Council member, were also present. Staff present were Jana McCarron, Director of Planning and Development; Amy Allison, Housing Program Coordinator; and Charlene Mosier, Planning Technician. 2. APPROVAL OF MINUTES Patton commented that housing programs are mainly for owner occupied houses and he would like to see programs for landlords also. The minutes of the August 23, 2017 meeting and notes from the September 27, 2017 meeting were approved on a motion by DeBerry, seconded by Gleason, passed unanimously. 3. ANNOUNCEMENTS a. Welcome to Angie Davenport Finlay welcomed new member Angie Davenport and asked her to introduce herself. Davenport said she is a Mortgage Loan Officer at People s Bank and Trust. She has interest in Hutchinson s housing stock. Her husband is a builder and when she was in the Leadership Reno County class her interest was in the condition of housing and what can be done to improve homes and promote infill. b. Community Development Block Grant Steering Committee Allison said Staff is preparing to apply for another Community Development Block Grant. For the grant submittal, a Housing Analysis Tool (HAT) is needed. Allison asked for three Housing Commission members to serve on a steering committee to help guide the process. Deberry, Patton, and Thomson volunteered for the committee. A schedule will be forth-coming. c Rental Registration & 2017 Renal Registration Update Allison said there are 59 properties that have not been paid for the 2017 Rental Registration. That comes to 99% compliance. There were 41 landlords that went to court this year for failure to register. This week, Staff sent out approximately 1100 letters for the 2018 Rental Registration. 4. WRITTEN REPORTS a. Brush Up Hutch b. Down Payment Match Incentive c. Zero-Interest Home Repair Loan d. Housing and Rental Registration Report

3 HOUSING COMMISSION MINUTES MEETING OF: WEDNESDAY, OCTOBER 25, 2017 The reports for the above-listed items were included in the agenda packet. Crabtree had a change to the Down Payment Match Incentive Report. The match should be $ for 604 E 15 th Ave. 5. ORAL REPORTS a. Healthy Neighborhood Initiative Gleason said a SW Bricktown group did a night walk audit and a day walk audit of the neighborhood. On the day audit they noted items such as sidewalks in disrepair and stickers along the streets. At night they saw how bright Kuhn-Krause is. They are working with the Tree Board on planting trees to block the light from the houses directly across the street from Kuhn- Krause. There is also abuse of the dyke area, as well as people living where they should not be living. There is not a good access point to the trail from the SW Bricktown Neighborhood. The mural is taking shape on the columns and the students are helping with mural. The residents want to focus on a neighborhood watch. Kuhn-Krause is willing to pay for neighborhood watch signs. Residents are leading this effort with the community police officer. Gleason spoke to Gary Price with the School District and they want to continue to be vested in the neighborhood and continue to use the Avenue A school building as a hub as long as the school owns the building. The school will continue working with the residents as a community resource. Finlay said two applicants will be interviewed for the position of Neighborhood Development Coordinator this week. McCarron said the Community Foundation provided grant funds for a seminar on sidewalk repair in SW Bricktown led by Jeff Thomson, Interfaith Housing Services. Ten people attended the seminar. b. Hutchinson Land Bank Update Allison updated the Commission that the Land Bank purchased two lots at the 2017 Reno County Tax Sale. A property on West Ave A in SW Bricktown has been donated to Interfaith Housing. Interfaith Housing is moving a house donated by Union Valley Church and a Mennonite group will be helping with the renovations. 6. OLD BUSINESS a. Recommended List of Strategies Allison updated the group that at the last meeting there was discussion about maintaining a housing database. The database will track data about housing in Hutchinson and will assist with grant development. 7. NEW BUSINESS a. Housing Rehabilitation Discussion 2

4 HOUSING COMMISSION MINUTES MEETING OF: WEDNESDAY, OCTOBER 25, 2017 Finlay said equity in the home is often not enough to do what needs to be done for repairs. McCarron said the map included in the agenda packet showing home values is an indication of the issue. Thomson said a house may look okay but needs $20,000 in upgrades. If the money is invested in the upgrades, the value of the house is more than the owner would get if it were sold. Even Interfaith Housing has issues meeting budget when labor and supplies are donated. Dechant said residents need to care about the area they are moving into. He recommended creating a five to ten-year campaign of promoting neighborhoods south of 11 th Ave. He spoke of the California fires and the issues that exist because of urban sprawl. Discussion ensued. The commission agreed that the concept was worth exploring. McCarron said Salina is looking at strategies for the same problem. Their plan is to start with commercial areas first and then work on housing. They did a survey on what kind of housing residents wanted to live in. The survey indicated smaller homes with character, located on smaller lots in walkable neighborhoods was more valued. Finlay asked if the housing problem is part of the school district boundary issue. Finlay said some parents don t want their Buhler students involved with Hutchinson students. He said realtors hear this as well. Finlay said if buyers are purchasing their homes based on the school then how does that affect our housing issues in the southern neighborhoods. Dechant said that is the reason to work with schools and see what prompts residents to live in a specific area. Schools can work with families and promote homes in their area. McCarron mentioned the former Darie King on East 4 th Ave is being opened again and one obstacle to new development is the required paving of parking lots. One option is to change some requirements to make the development requirements easier. Deberry said East 4 th Ave is not attractive now and asked how we can improve this. Finlay said the drive from Fun Valley into Hutchinson is also not attractive. Dechant said we need to promote the positives. McCarron mentioned the perception survey and asked the commission to take it. 8. OTHER a. The next regularly scheduled Housing Commission meeting is Wednesday, November 15, 2017, at 4:00 p.m. 9. ADJOURNMENT The meeting adjourned at 5:10 p.m. Respectfully Submitted, Charlene Mosier, Planning Technician Approved this day of, Secretary 3

5 2017 Housing Commission Roster ITEM 3B Scott Cooley (Lender/Landlord) Paganica Pass Hutchinson, KS At Large Angie Davenport (Lender) At Large 804 Gene St Hutchinson, KS Nathan DeBerry (Construction) 2 W 21st Ave Hutchinson, KS nathan@ibew661.com Anthony Finlay (Chair) 412 E 15th Ave Hutchinson KS tfinlay@hutchrec.com At Large At Large Lisa Gleason At Large Paganica Pass Hutchinson KS lgleason@unitedwayofrenocounty.org Kelly Anne Lanham (Realtor) At Large 2904 Tartan Trail Hutchinson, KS kellyanne@elite-realestategroup.com Aubrey Patterson P O Box 298 Hutchinson, KS Aubrey@hutchcf.org Ryan Patton (Landlord) 3504 Rockwood Dr Hutchinson, KS b_boi_77@hotmail.com Lucas Soltow (Realtor) 315 E 36th Ave Hutchinson, KS lsoltow@gmail.com At Large At Large At Large (Home) Term # 0 (Work) Term: 6/29/2016 thru 6/29/ (Home) (Work) Term # Term: thru 0 10/3/2017 6/29/ (Home) Term # 1 (Work) Term: 6/29/2017 thru 6/29/ (Home) (Work) (Home) (Work) (Home) (Work) (Home) (Work) Term # Term: thru Term # Term: thru Term # Term: Amelia Boyd thru Term # Term: 2 6/29/2017 6/29/ /5/2015 6/5/ /7/2017 6/5/2018 Kevin Bleything thru 2 6/29/2017 6/29/ (Home) Term # 1 (Work) Term: 6/29/2017 thru 6/29/ (Home) (Work) Term # Term: thru 1 7/20/2015 7/20/2018 L McConnaughy Dan Rich P O Box 2504 Hutchinson, KS Dan.rich.100@att.net Ex-Officio x103 (Home) (Work) Term # Term: thru 3 Thursday, November 9, 2017 Page 1 of 2

6 Jeff Thomson 1326 E Ave A; P O Box 1987 Hutchinson, KS jeff@ihs-housing.org Ex-Officio (Home) (Work) Term # Term: thru 3 Thursday, November 9, 2017 Page 2 of 2

7 ITEM 4A 2017 Completed Cases to Date Brush Up! Hutch 125 E Avenue B., Hutchinson, KS PURPOSE Annual BUH Tracking PHONE NAME Aaron Barlow BEGINNING 1/1/17 Aaron.Barlow@Hutchgov.com DEPART. Planning & Development ENDING 12/31/17 WEB POSITION Associate Planner PREPARED BY Aaron Barlow MANAGER Jana McCarron APPROVED BY Jana McCarron House Size Date Applicant Application Address Volunteer Labor? Notice of Violation? < 1,000 ft 2 > 1,000 & 2,000 ft 2 < > 2,000 ft 2 Average Size Cost Total Cost Over Cost 9/23/2017 Jones 17 BUH E 2nd Ave x 1723 $ $ $ /23/2017 Compos 17 BUH W 8th Ave x 884 $ $ $ /25/2017 Bright 17 BUH S Maple St x 1533 $ $ $0.00 9/25/2017 Barnes (Tice) 17 BUH East 23rd x 1160 $ $ $ TOTALS $1, $1, $ Average $ $ $49.20

8 November 2017 Monthly Report Open Brush Up Hutch! 125 E Avenue B., Hutchinson, KS PHONE NAME Aaron Barlow BEGINNING 1/1/2016 Aaron.Barlow@Hutchgov.com POSITION Associate Planner ENDING 12/31/17 WEB MANAGER Jana McCarron PREPARED BY Aaron Barlow Due Date Applicant Application Address Volunteer Labor? Notice of Violation? APPROVED BY Jana McCarron < 1,000 sq. ft. House Size > 1,000 & 2,000 sq. ft.< > 2,000 sq. ft. Average Size Authorized Cost 9/4/2017 Portillo 17 BUH East Ave F x 1568 $ /7/2017 Caswell 17 BUH East Ave A 900 $ /31/2017 Becker 17 BUH Forrest St x 947 $ /30/2017 Boone 17 BUH East 2nd Ave 2128 $ /31/2017 Reed 17 BUH East 9th Ave 1213 $ /31/2017 VanCampen 17 BUH East Ave A 832 $ TOTALS $1, Average $300.00

9 ITEM 4B 2017 Down Payment Match Incentive Monthly Report 125 E Avenue B., Hutchinson, KS PHONE NAME Amy Allison BEGINNING 1/1/2017 Amy.Allison@Hutchgov.comPOSITION Housing Program Coordinator ENDING 12/31/17 WEB MANAGER Jana McCarron PREPARED BY Amy Allison APPROVED BY Jana McCarron Approval Date Address Neighborhood Purchase Price Match Amount Administration Fee Closing Date Original Occupancy 3/1/ E 17th Ave College Grove $105, $2, $ /15/2017 Owner 4/17/ N Poplar St College Grove $68, $ $ /26/2017 Owner 9/20/ E 15th Ave College Grove $70, $ $ /2/2017 Owner TOTALS $ 4, $ Average $1, Remaining Balance $29,944.04

10 ITEM 4C 2017 Zero-Interest Home Repair Monthly Report 125 E Avenue B., Hutchinson, KS PHONE NAME Amy Allison BEGINNING 1/1/2017 Amy.Allison@Hutchgov.com POSITION Housing Program Coordinator ENDING 12/31/17 WEB MANAGER Jana McCarron PREPARED BY Amy Allison APPROVED BY Jana McCarron Approval Date Address Neighborhood Loan Amount Interest Completion Date 3/3/ E 15th Ave College Grove $8, $ /9/ E 16th Ave College Grove $15, $2, /25/ E 16th Ave College Grove $6, $ /25/ E 12th Ave College Grove $15, $2, /16/ E 12th Ave College Grove $15, $2, /28/2017 7/24/ E 15th Ave College Grove $15, $2, /27/ E 15th Ave College Grove $15, $2, /18/ E 15th Ave College Grove $15, $2, /5/ E 16th Ave College Grove $15, $2, /8/ E Sherman Ave Houston Whiteside $5, $ TOTALS $ 17, Average $1, Total Private Investment $124, Remaining Balance $17,467.36

11 ITEM 4D Housing and Rental Registration Report Year-to- Date October 2017 October Registered Rental Units Rental Inspections Rental Interior Violations Property Maintenance Violations Property Maintenance Investigations New Residential Permits Total New Housing Valuation $2,557, , , Residential Alterations Demolitions Approved Residential NRP Approved Infill Incentives Date: 11/08/2017

12 ITEM 6A Housing Commission Staff Report MEETING DATE: 11/15/2017 November 8, 2017 TO: FROM: Hutchinson Housing Commission Amy Denker, Housing Program Coordinator THROUGH: Jana McCarron, Director of Planning & Development SUBJECT: Housing Commission: 2017 Topical Discussions The 2017 Topic Discussions were developed to help the Housing Commission identify and create a strategic plan for the 2018 calendar year. The following list identifies strategies to explore and potentially implement. Following completion of the 2017 Discussion Calendar, the Housing Commission will review the final list for prioritization. The potential dates included in the list below can be amended based on that prioritization. If a strategy is deemed urgent, staff will prepare a timeline for immediate implementation. Recommended List of Strategies: Previously Discussed 1. Remove complaint-only policy from key IPMC code violations. Start Date: 2018 Completion Date: TBD 2. Create Roof/Sidewalk Repair Assistance Program Start Date: 2018 Completion Date: TBD 3. Promote more Before & After Photos of Successful Cases Start Date: July 2017 Completion Date: On-going 4. Research Transient Guest Tax, Building Permit Fees, & Housing Trust Fund as Potential Funding Sources Start Date: 2018 Completion Date: TBD 5. Provide focused educational opportunities targeted towards a specific need or population. Start Date: 2018 Completion Date: On-going

13 6. Host Landlord Code and State/Federal Law Training. Start Date: 2018 Completion Date: Modify the Down Payment Match Program to match similar assistance programs. Start Date: October 2017 Completion Date: December Provide and partner with local entities on educational seminars for homeownership preparation and land contracts Start Date: 2018 Completion Date: Add Homeownership & Economics to the 2018 Topic Discussion Calendar Start Date: 2018 Completion Date: Create & Maintain Housing Database Start Date: 2018 Completion Date: On-going Strategies from October 2017 Meeting 1. Develop a campaign designed to promote moving in to Hutchinson Start Date:? Completion Date:? 2. New Resident Survey (work with Realtors) Start Date:? Completion Date:? 3. Include Investors in housing programs to promote rehabilitation in rentals Start Date:? Completion Date:?

14 ITEM 7B Housing Commission Staff Report MEETING DATE: 11/15/2017 November 8, 2017 TO: FROM: Hutchinson Housing Commission Amy Allison, Housing Program Coordinator THROUGH: Jana McCarron, Director of Planning & Development SUBJECT: New Construction Discussion BACKGROUND: For the past several decades, Hutchinson has experienced a slow growth rate in new, singlefamily residential construction. Figure 1 shows permits pulled for single-family construction versus permits pulled for residential demolitions since As the figure shows, Hutchinson has seen a net decrease of 26 units in single-family residential. The Demolition Program, adopted in 2009, accounts for the increase in the demolitions, but the structures demolished present a health and safety problem to the community, making those demolitions necessary YTD 2017 New Demo While single-family residential construction has not seen much growth over the past 9 years, Hutchinson has seen growth in duplex and multi-family developments. Figure 2 shows the permits pulled for all residential structures, with 180 new or updated multi-family units hitting the market. Duplexes have contributed 70 new units as well. What is causing these development patterns? YTD 2017 Single-Family Duplex Multi-Family A simple housing tenure analysis shows that renter-occupied households have been increasing in Hutchinson (Figure 3). From 2000 to 2010, both owner and renter occupied households saw increases, but the 2015 ACS estimates show that owner-occupied households decreased. Renter-occupied households still increased. Should this trend continue, like national trends, Hutchinson will continue to see more renter-occupied households, therefore creating a higher demand for multi-family developments. Another concern, which Figure 2 alludes to is Hutchinson s decreasing population projections. Hutchinson has seen small population growth over the past few decades, but population projections conducted as part of the Comprehensive Plan show population decline. New 1

15 New Home Construction Discussion November 15, 2017 home construction is needed to replace housing in poor condition, but large single-family construction is not likely unless Hutchinson sees more people moving into the community. Total Housing Tenure Owner- Occupied Percentage Renter- Occupied Percentage ,324 10, % 5, % ,891 10, % 6, % 2015 Estimate 16,659 10, % 6, % Another issue Hutchinson faces when discussing new home construction is regional and local competition. Surrounding communities like McPherson, Newton and Maize have all seen more single-family construction than Hutchinson. Due to the increasing regionalism in our area, Hutchinson s workers no longer must find housing in Hutchinson, and have opted to relocate to other communities and commute daily to their jobs. In addition, Hutchinson faces stiff competition from just outside its borders. Figure 4 compares the single-family permits pulled in Hutchinson vs. single-family permits pulled in the county within a 5-mile distance of city limits. New Single-Family Construction Hutchinson County YTD Total PAST & CURRENT EFFORTS: Like housing rehabilitation, new residential construction has been a target area for housing by the City. The following programs and grants have been created and funded to facilitate new home construction: Neighborhood Revitalization Program (Existing) Provides a rebate of a portion of the increased property taxes incurred due to a rehabilitation or new construction project south of 11 th Avenue. New Construction Home Incentive Program (Past Program) Provided a rebate of the increased property taxes (City s portion) for new, singlefamily construction within City Limits. To support single-family new construction, the City created a program like NRP, for all new construction within city limits called the New Construction Home Incentive Program. The program was in operation from 2013 to In the two years, 24 property owners utilized the program, but most program participants did not build due to the rebate. In fact, city employees were tracking down owners after houses were built and handing out the rebate. Due to this, City Council decided to not extend the program. 2

16 New Home Construction Discussion November 15, 2017 Special Assessment Districts (Existing) Assists developers with infrastructure costs by bonding the project and city subsidizing some costs. Repayment of bond is passed onto the home purchasers. Rural Housing Incentive Districts (Existing) Assists developers with infrastructure costs by creating a tax increment district. The increased taxes from the housing development is annually repaid to the developer over a 15-year timeframe. In response to developers concerns that Special Assessments were deterring buyers from purchasing new construction, the City applied to the State and was approved for Rural Housing Incentive Districts. Instead of placing an additional $200+ monthly expense on a new construction homeowner for repayment of Special Assessments, RHIDs allow for the increased property taxes collected from new construction to pay for the infrastructure costs. While this program could alleviate costs for new construction home purchasers, no developer has utilized the program. Low Income Housing Tax Credits (Existing State Program) Provides developers tax credits to raise funds for low-income multi-family projects. Historic Tax Credits (Existing State & Federal Program) Provides developers tax credits for historic preservation projects, which can be residential projects. Moderate Income Housing Grant (Existing) A state funded grant which supports the development of primarily multi-family developments in small to moderate sized communities in Kansas. New multi-family construction has heavily benefitted from the use of tax credits and grants during the past 9 years. In fact, 207 of the 295 duplex and multi-family units added to the market have utilized one or more of the programs listed above (Figure 5) YTD 2017 Single-Family Duplex Multi-Family FUTURE EFFORTS: The City hopes to continue to partner with multi-family developers to build additional rental units. 3

17 New Home Construction Discussion November 15, 2017 Regarding single-family new construction, there are currently 93 platted, shovel ready residential lots inside city limits. These lots have been developed as part of Special Assessment Districts. A comment from one developer was that if he began an RHID, he feared he would never be able to sell his existing lots. Unfortunately, there is no way to cancel a special assessment district once it has been established. Additionally, there are 329 platted lots that do not have improvement districts but represent future development potential. NEXT STEPS: Staff will prepare a recommendation based upon the Housing Commissioner discussion for review at the December 13, 2017 meeting. 4

18 ITEM 8A Amy Allison From: Sent: To: Subject: Nicki McFarland Monday, November 6, :59 PM Amy Allison Rental Registration Question Dear Amy, I went in and paid my rental registration fees today. I had some questions and was referred to you by the associate handling my payment. My question is in regards as to why I am being charged three inspection fees for one house. The property in question is my triplex at 510 East 6th. I pay taxes for this one house not three taxes just because it is a triplex and my insurance is also for one house and not three on this property. It seems to me an undo hardship on people that choose to have duplexes or triplexes in this town. I think what really has me frustrated is because this is a triplex house I have to pay far more out on it than any single family home that I rent. I do all the mowing and yard care at this house unlike my other units. That more dollars and time plus I also pay for all the water, sewer and trash fees for this house. I pay the water, sewer, and trash there as one property address as it is not three like you are charging me. I found out further huge apartment complexes are given a discount per unit. Wow this seems like a double standard! So those that have big complexes making much more money than the small guy get discounts yet for this one house I own I have to pay rental registration fees on three times? Why is it this way? I'm not for even paying rental registration fees but I'm doing my part to stay in right with the city. You have to know from the outside landlord and common citizen view it really just looks like a way for the city to penalize landlords and for the city to pocket easy money. You could simply have charged landlords when an inspection was done one any house when it is done verses incorporating yearly fees and making us all pay. I really hope at a minimum you will look at triplexes and duplexes as one house if it is in fact ONE house! This appears to be a double standard that big large complexes that make a lot of money get discounts while those trying to follow all the rules but only have few rentals get no discounts and fined more harshly when I'm in fact offering my triplex far more benefits I am paying for out of my own pocket than of my other single family homes. Id really appreciate a response as to why I'm being charged for three houses when this is just one house a triplex that I pay taxes on as ONE house with the city. I also pay insurance on this house as ONE house not three. Thank you for your time and consideration on this issue. Sincerely, Nicki McFarland phone times_havechanged@live.com 1